A virtual machine is a piece of software able to emulate computer architecture, features and functions of a real computer. Using a VM gives you the possibility to have concurrent operating systems running in the same time with another system. For example you can have Windows as a basic operating system and Linux or Mac or any other operating system running in the same time in Windows environment.
You can use VirtualBox or VMware to create such virtual machines. Both suggested applications have support for the Chinese language.